AIR (Ecosystem Services)

Ecosystem Services are the work nature does for us for free. We now have the opportunity to use the power of markets to protect key ecosystems for their continued support of the planet and the economy for the generations to come.

Through its engagements with avoided deforestation and renewable energies, Topan participates in carbon markets with a focus on emerging market-tools for the protection of key natural assets.

Forests remove some of the CO2 we emit, and protect our soils. Intact ecosystems around watersheds help guarantee the continued supply of water to cities. Key ecosystems such as meadows with wild flowering plants are home to armies of insects that pollinate our food crops. Coral reefs protect our coasts from flooding habitats and act as nurseries for the fish we eat.

Ecosystem services were taken for granted until a few years ago, and the power of ecosystems to regulate our environment and provide us with resources was allowed to diminish. In recent years, the economic value of ecosystem services, in particular climate services (“carbon offsetting“), has become increasingly acknowledged, and markets for trading in ecosystem services have emerged.

The most prominent example of markets in this field are the carbon markets, in which carbon credits are equivalent to the climate services generated by activities that contribute to the mitigation of climate change through offsetting emissions of greenhouses gases into the atmosphere. Clean energies avoid emissions in comparison with traditional fossil-fuel based energy sources, whereas forests have a significant potential to sequester CO2 from the atmosphere. At present, accessing the voluntary carbon market through selected projects worldwide is still the best option for investors wishing to contribute to climate change mitigation. Carbon credits in the voluntary market originate from projects in the fields of energy (wind, hydro, landfill, wastewater livestock and coalmine methane, biomass, cook-stoves, fuel switching) and forestry (avoided deforestation, forest management and reforestation / afforestation).

Other examples of emerging markets for ecosystem services are water, biodiversity and conservation banking. These schemes are fairly new and are so far mostly institutional ways of managing water resources using market tools. However, the acquisition of this type of Ecosystem Services credit is becoming more popular for purposes of Corporate Social Responsibility.

If you wish further information on this business sector focus of Topan or are looking for Ecosystem Services linked investments or wish to introduce project investments to us please contact info@topan.ch or use our online form and we will revert immediately.